F&C Asset Management shareholders have approved its takeover by the Bank of Montreal after Elliott Advisors, which had built up a 20% stake through derivatives, chose not to vote.

Of shares voted, 99.6% were in favour of the deal, well ahead of the 75% required to get it approved. After taking account of Elliott's un-voted stock, owners of 58% of the company voted.

Elliott Advisors, an activist investor, built a 20% stake in F&C through derivatives contracts known as "contracts for difference". It owns an economic interest in F&C equivalent to 20.36% of the voting stock, according to regulatory filings.

The derivatives give an economic exposure to the firm's shares but do not grant voting rights. However, holders of CFDs can sometimes instruct their brokers, who hold the related stock, to vote on their behalf.

Elliott Advisors has been building its stake in F&C since late last year, before Bank of Montreal made its 120p-a-share cash offer in January, which values F&C at £708 million. Elliott was adding to its holding as recently as the end of last week.

F&C's share price spiked at 125p a share in the immediate wake of the BMO offer. The shares were trading at 120p before today's vote, suggesting the market believes today's vote will go through. Analysts say it is now likely that the Bank of Montreal deal will go through, although a rival bidder still has until May 7, when its offer closes, to spoil the party.

*Correction: An earlier version of this story incorrectly stated that, of shares voted, 91.8% were in favour. The correct figure is 99.6%.